(CNN) -- Penn State has had its share of controversy for a while, but this week it is getting some more unwanted attention.

The university's Chi Omega sorority chapter is under investigation after a photo with Latino stereotypes surfaced on a social media site.

It shows a group of sorority members dressed in ponchos and sombreros and wearing fake mustaches. One woman holds a sign that says: "Will mow lawn for weed + beer." Another sign says: "I don't cut grass. I smoke it."

The university's Panhellenic Council said it had received concerns about the photo and that it does not condone derogatory behavior from members.

"The Penn State Panhellenic Council recognizes the offensive nature of the photo and is therefore taking the matter very seriously," the executive board said in a statement.

"We are addressing the situation immediately with the members of the chapter in conjunction with their national headquarters," it said. "Our council and all its members strive to hold ourselves to a high standard and are disappointed by any failure to meet these expectations."

"Our chapter of Chi Omega sincerely apologizes for portraying inappropriate and untrue stereotypes," she said. "The picture in question does not support any of Chi Omega's values or reflect what the organization aspires to be."

The connections to the sorority were discovered through members' names tagged on Facebook, Onward State said.

The posts have since been taken down.

Penn State public relations director Lisa Powers said that university officials have had conversations with Chi Omega members and that the women have expressed "deep remorse."

"The students in the photo are within their First Amendment rights to express themselves in this way, although we are certainly appalled that they would display this level of insensitivity and lack of judgment," Powers said.

"Because the right of free expression is guaranteed under the Constitution - for both behaviors we disagree with or for those that we support - we are approaching this as a teachable moment to engage this group of young women in discussions about their actions and to further educate them about diversity issues," she said.

Powers said the national leadership of Chi Omega will have to decide if disciplinary action is warranted. A phone call to the sorority's headquarters was not immediately returned.

The president of the Penn State Latino Caucus told The Daily Collegian that the photograph shows cultural ignorance.

"In terms of the Latino Caucus, the portrayal of sombreros, ponchos and mustaches are a huge over simplification of what not only the Mexican but the Latino culture is like," Ariel Coronel said. "It's being culturally ignorant, and I really do hope that the sorority tries to become culturally aware so this type of incident doesn't happen again and that people will realize that this is racially and culturally insensitive."